Is The Selling Over Or Just Starting?

The stock market was able to survive the latest FOMC meeting and gyrating interest rates the prior week setting the stage for this week’s selling. Before the week started it seemed like both traders and investors were set up for a market decline as stocks didn’t need any real catalyst to turn lower.

There were warning signs ahead of the long weekend as the starc+ band analysis made it clear that several key market averages were stretched on the upside. Just a month ago many thought the S&P 500 would not get above 4200 or 4250 so last week’s high of 4448.47 was painful to those on the short side.